China Sinks $1 Billion Into Venture with Canadian Miner

Mercredi, mars 17th, 2010

China just struck a $1 billion deal with Canadian copper producer Quadra Mining Ltd. for its assets in Chile and a stake in the Vancouver-based company, reported Canada’s Globe and Mail.

The joint-venture deal gives China a new copper source amid worries of a shortage in the country, while mid-tier producer Quadra receives the financing it needs to build projects and make future acquisitions.

The deal is the latest in a growing list of state-owned Chinese firms that have bought pieces of Canadian resources companies.

Quadra’s deal is a memorandum of understanding with State Grid International Development Ltd., a division of State Grid Corp. of China, the country’s largest utility company and one of the world’s largest copper customers. The deal is expected to be made official in May and close next fall.

It’s the first time State Grid has invested in a copper producer. The metal will be used to help develop power grids, and comes as China’s market is expected to see a shortage of copper this year despite a massive restocking in 2009.

State Grid will put $900 million into the joint venture as projects are built, and pay about CAD152 million for 10 per cent of Quadra’s shares.

The $900 million total is the value placed on Quadra’s two projects in Chile.

Source : Konaxis

China Minmetals Eyes Gold Mines In Australia, Canada

Mercredi, novembre 4th, 2009

Chinese state-owned metals trader China Minmetals Corp. is looking to buy gold mines in Australia and Canada, a senior executive said at an industry forum in China’s port city of Tianjin on Thursday, reported Reuters.

Separately, a Minmetals executive at the China Mining conference said on Wednesday that the company would launch construction at its Galeno copper mine in Peru next year, with production due to start in 2012.

State-owned Minmetals, founded in 1950, is the country’s largest base metals trader, engaged in mining, smelting, production and trade of basic metals and raw materials, and competes with the other big state-run trader, Sinosteel, in iron ore and steel.

China Minmetals reported sales of 180.9 billion yuan ($26.6 billion) last year, and a net profit of 7.1 billion yuan, up from 6.8 billion yuan in 2007. The company has two listed units – Minmetals Resources in Hong Kong, which controls its aluminium business, and Minmetals Development Co Ltd in Shanghai.

Source : Konaxis